Page 28 - Australasian Paint & Panel Nov-Dec 2022

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PAINT&PANEL NOVEMBER / DECEMBER 2022
manufacturer you are in the position where you can add more,” Johnny said.
PROFITABILITY
Our last topic was profitability – how do we achieve it in an inflationary en- vironment? We discussed the some- what derisory increases that insurance companies have been offering in the face of spiralling costs.
Brad Kolich made the point: “Tell one outside of this industry wha we’re actually physically on or what we’re claiming, they nearly collapse in front of you and ask you how you are actually sustainable at the moment.
I think collectively we’ve got a fantas- tic opportunity as an industry at the mo- ment to really sit down and work togeth- er to justify our very real costs.”
He also added when there is passion for the industry as well as the confi- dence in the future, demonstrated at our roundtable, it means that the industry will flourish.
Johnny says he’s given up asking for more money but believes there are bet- ter times ahead. He agrees that the in- dustry needs to work together and that going forward the capacity issue will only worsen.
“The skills shortage along with shops
closing are blowing out repair times. How long will people be OK with insur- ers telling them it will take over a month to repair their car? I think they are going to want the shops that are left to get big- ger in order to get that key to key time down. For us to do that we need to be paid more.”
Johnny says it’s important to be confi- dent and know your numbers when ne-
I try and upsell to them
as much as I possibly can from the get-go.”
gotiating with insurance companies. “My wife as a lawyer will charge out $500 an hour, we charge out $80 an hour. They’ve got hardly any overheads but we have – rent, equipment, wages
and we are definitely underpaid.” Aaron Scagliotta obviously has faith in the future of this industry and being able to make profit as he’s investing in
building a second shop.
“So the first point of contact is when
you’re dealing with the customer, I try and upsell to them as much as I possibly can from the get-go. So, yeah, you’re do- ing a job and you’re doing it for a cost be-
cause, let’s face it, we’re price-takers, we’re not price-makers. Well, what else can we do for them while we’ve got them there? We’ve already mixed the paint up and we all mix too much, we’re already touching that vehicle. What additional oncosts or onselling can we do to that customer to make us profitable?
“They’re coming to you for one reason and you can have them leave you for an- other reason, right? Probably 70-80% of the vehicles that I repair I’m doing additional work on, and so I promote that within the business. I incentivise my staff to upsell.
“The second part, of course is diversifica- tion. We’ve got a mechanical business, we do services and tyres and everything else.
Another way to be more profitable is to be more efficient in your processes. You’ve got faster paint processes, you’ve got faster systems in place. You can do the same things quicker and better than the next per- son can. It’s about making sure that you do the same thing over and over again and you get better at doing it. So your process is better, so then you’re selling better.”
Marlea Bent agrees that upselling is a path to profitability . “I appreciate what AMA is trying to do at the moment with insurers to increase rates.
“With regards to upselling our esti- mators are on discretionary bonuses
any-
t